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How to Record Transactions or Create a Company File for Rental Property Company in QuickBooks Desktop?

QuickBooks is considered a good and reliable property management software. In simple terms, QuickBooks has the ability to help in […]

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QuickBooks is considered a good and reliable property management software. In simple terms, QuickBooks has the ability to help in rental property accounting substitutions. Users can set up their properties as customers, sub-customers, tenants, etc., to monitor different transaction types.

Hence, it is important to record the rental properties transactions you handle for the efficient management organization in QuickBooks Desktop.

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For those who are property managers, they offer services to tenants of the property or property owners. In such a scenario, you need to make and manage two company files.

Property Management Company: It is your organization. Here you acquire earnings from managing the properties.

Rental Property Company: You pay bills, collect rent, and then take care of the property on behalf of the owner.

Note: With only these two company files, you will be able to separate the companies’ transactions from one another.

Now let’s learn how to create a company file for a particular rental company.

How to Prepare a Company File for a Particular Rental Company?

In a company file for a rental company, you monitor every transaction for the properties you handle. Here you can register the expenses as well as the rent income.

Take a look at the steps to create such a company file for a rental company:

Step 1: Set up the Vendors and Tenants.

You need to set up the tenants as customers of properties or jobs of properties. Then set properties as customers and owners as vendors.

Note: It is possible to set up the property owners as vendors. This is because you are paying them the net income from their property.

Step 2: Set up the Items and the Accounts too.

Before you try to record any transaction, you must set up accounts along with service items that you access. Here are some of them that you can set up:

Set up deposits as liabilities, checking accounts as assets, property management expenses, and the property owner payments in the form of expenses, common area maintenance expenditure, and rent income as income.

Note: Do you handle commercial properties too? Then you must set up a service item and income account if you charge your tenants for the common area maintenance expenses. This helps you monitor common area maintenance income separate from other expenses that you charge.

Step 3: Record the Deposits for Security

Several property owners request a security deposit from the tenants during the commencement of the rent tenure. It is the liability of the rental company because you may give back some or all of the particular amount at the end of the tenure.

It is possible for you to use the liability account like a Security Deposit to monitor every tenant’s deposit with the steps given below:

Step 1: Navigate to the Banking menu. Now choose the Make Deposits option.

Step 2: In the particular column drop-down for Received From, choose the tenant.

Step 3: In the given drop-down for From Account, choose the security deposit account you set up.

Step 4: Type in the amount and choose Save and Close.

Step 4: Monitor the Rent Earnings

You will be able to record the rent from your particular tenants in two possible ways. It is influenced by when the actual rent payment is received.

Step 1: Record the earnings from rent as payments from sales receipts and income.

Step 2: Ensure to choose the tenant and particular item.

Note: Tenants often make payments that are late. It is possible to use QuickBooks finance charges to determine and include the late charges to their invoices.

Step 5: Record the Expenses for Every Property

You are also required to monitor the expenses. Such expenses include property management fees and property expenses.

Property Expenses

There are certain expenses to preserve a property like repairs and utility. Here are the steps to record the property expenses:

Step 1: Based on your payment, record the expenses:

  • As checks, if the vendors are paid right away
  • As bills, if you make payment at a later date

Step 2: From the drop-down for Customer: Job, choose the tenant or the property you want.

Property Management Expense

The fees for property management are based on your precise agreement with every property owner. In case the base of property’s net income or gross income, the fee can be determined by using the Profit and Loss report.

You can register the fees for property management as a check or even as a bill. Just ensure to choose the tenant or property from the drop-down of Customer:Job.

How to Charge an Expense to Any Tenant?

When any damage is caused to the property by any tenant, or request the owner to complete a specific task, the expense for that is charged to their account rather than the owner. These costs are named Billable Expenses.

When you charge the tenant for those expenses, these extra expenses are added to their sales receipts or invoice with the help of the steps provided below:

Step 1: Record the particular expense as a check or bill.

Step 2: From the drop-down for Customer:Job, choose the tenant.

Step 3: In the particular Billable column, choose the checkbox.

Step 4: After an invoice has been created or a sales receipt, add the particular billable costs.

Step 6: Pay Money to the Owners of the Property

After you record all the expenses and income of the properties, now you can see the due amount to every owner of the property.

Note: It is possible to use a Profit and Loss report to see or determine how much to send to the account of the property owners.

Step 1: Write a check to do the payment.

Step 2: Ensure to choose the property owner.

Step 3: From the drop-down of the Account column, choose the payment account of the owner.

Step 4: Run the Profit and Loss report to see the net income for every property. In case the owner of the property wants to leave a portion of the given net income, you will see the net income amount. If that is not the case, the net income must be zero.

How to Create a Company File for a Particular Property Management Company?

In the property management company file, you can monitor the transactions of your business. It is where you will register your expenses and income for managing properties.

Here is the step to create a company file for a property management company:

Step 1: Set up your property owners as your customers.

Step 2: Set up items and accounts.

Set up equipment costs as assets, checking accounts, and furniture as assets too. The payroll liabilities should be set as a liability, utilities and insurance as an expense, and income as income.

Step 3: Record the income as Property Management.

You can register income from the property owners in two different ways. It is based on when you get the original payment.

  • Record the income from management of the property owners.
  • Record the income as invoices when the payment is received at a later date.
  • Record the income as sales receipts if the payment is received immediately..
  • Ensure to choose the tenant along with the service team you had set up.
  • Add the amount got from property owners.

We hope that the process to record transactions or create company files in QuickBooks Desktop in a rental company is clear to you. We have classified and stated all the steps concerning this requirement. We have pointed out the steps to prepare a company file in a rental company and a property management company too.

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Frequently Asked Questions (Faqs)

Will QuickBooks be Helpful in Property Management?

QuickBooks is always the top priority for the professionals of Property Management for the concerned business.

QuickBooks can be used to handle all your rental transactions. It can be done by setting properties as the customers and tenants as sub-customers. The tenant sub-expense will display related payments, rent invoices, and the current balance.

Features of Dancing Numbers for QuickBooks Desktop

Imports

Imports

Exports

Exports

Deletes

Deletes

Customization

Customization

Supported Entities/Lists

Dancing Numbers supports all QuickBooks entities that are mentioned below:-

Customer Transactions

Invoice
Receive Payment
Estimate
Credit Memo/Return Receipt
Sales Receipt
Sales Order
Statement Charge

Vendor Transactions

Bill
Bill Payment
Purchase Order
Item Receipt
Vendor Credit

Banking Transactions

Check
Journal Entry
Deposit
Transfer Funds
Bank Statement
Credit Card Statement
Credit Card Charge
Credit Card Credit

Employee Transaction / List

Time Tracking
Employee Payroll
Wage Items

Others

Inventory Adjustment
Inventory Transfer
Vehicle Mileage

Technical Details

Easy Process

Easy Process

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Error Free

Error Free

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On-time Support

On-time Support

We provide round the clock technical assistance with an assurance of resolving any issues within minimum turnaround time.

Pricing

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Importer, Exporter & Deleter

*See our Pricing for up to 3 Company Files

$199/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Unlimited Export
  • Unlimited Import
  • Unlimited Delete

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Accountant Basic

*See our Pricing for up to 10 Company Files.

$499/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer,Exporter,Deleter
  • Unlimited Users
  • Unlimited Records
  • Upto 10 companies

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Accountant Pro

*See our Pricing for up to 20 Company Files.

$899/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 20 companies

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Accountant Premium

*See our Pricing for up to 50 Company Files.

$1999/- Per Year

Pricing includes coverage for users
  • Services Include:
  • Importer, Exporter, Deleter
  • Unlimited Users
  • Unlimited Records
  • Up to 50 companies

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Frequently Asked Questions

 
How and What all can I Export in Dancing Numbers?

You need to click "Start" to Export data From QuickBooks Desktop using Dancing Numbers, and In the export process, you need to select the type you want to export, like lists, transactions, etc. After that, apply the filters, select the fields, and then do the export.

You can export a Chart of Accounts, Customers, Items, and all the available transactions from QuickBooks Desktop.


How can I Import in Dancing Numbers?

To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system. To import the data, you have to update the Dancing Numbers file and then map the fields and import it.


How can I Delete in Dancing Numbers?

In the Delete process, select the file, lists, or transactions you want to delete, then apply the filters on the file and then click on the Delete option.


How can I import Credit Card charges into QuickBooks Desktop?

First of all, Click the Import (Start) available on the Home Screen. For selecting the file, click on "select your file," Alternatively, you can also click "Browse file" to browse and choose the desired file. You can also click on the "View sample file" to go to the Dancing Numbers sample file. Then, set up the mapping of the file column related to QuickBooks fields. To review your file data on the preview screen, just click on "next," which shows your file data.


Which file types are supported by Dancing Numbers?

XLS, XLXS, etc., are supported file formats by Dancing Numbers.


What is the pricing range of the Dancing Numbers subscription Plan?

Dancing Numbers offers four varieties of plans. The most popular one is the basic plan and the Accountant basic, the Accountant pro, and Accountant Premium.


How can I contact the customer service of Dancing Numbers if any issue arises after purchasing?

We provide you support through different channels (Email/Chat/Phone) for your issues, doubts, and queries. We are always available to resolve your issues related to Sales, Technical Queries/Issues, and ON boarding questions in real-time. You can even get the benefits of anytime availability of Premium support for all your issues.


How can I Import Price Level List into QuickBooks Desktop through Dancing Numbers?

First, click the import button on the Home Screen. Then click "Select your file" from your system. Next, set up the mapping of the file column related to the QuickBooks field. Dancing Numbers template file does this automatically; you just need to download the Dancing Number Template file.

To review your file data on the preview screen, just click on "next," which shows your file data.


What are some of the features of Dancing Numbers to be used for QuickBooks Desktop?

Dancing Numbers is SaaS-based software that is easy to integrate with any QuickBooks account. With the help of this software, you can import, export, as well as erase lists and transactions from the Company files. Also, you can simplify and automate the process using Dancing Numbers which will help in saving time and increasing efficiency and productivity. Just fill in the data in the relevant fields and apply the appropriate features and it’s done.

Furthermore, using Dancing Numbers saves a lot of your time and money which you can otherwise invest in the growth and expansion of your business. It is free from any human errors, works automatically, and has a brilliant user-friendly interface and a lot more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


Is it possible to use the Direct Connect option to sync bank transactions and other such details between Bank of America and QuickBooks?

Yes, absolutely. You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at bankofamerica.com. This feature allows you to share bills, payments, information, and much more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


What are the various kinds of accounts you could access in QuickBooks?

QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts.

Get Support

Bulk import, export, and deletion can be performed with simply one-click. A simplified process ensures that you will be able to focus on the core work.

Worried about losing time with an error prone software? Our error free add-on enables you to focus on your work and boost productivity.

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